Correlation Between JSC Halyk and VIRG NATL
Can any of the company-specific risk be diversified away by investing in both JSC Halyk and VIRG NATL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JSC Halyk and VIRG NATL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JSC Halyk bank and VIRG NATL BANKSH, you can compare the effects of market volatilities on JSC Halyk and VIRG NATL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JSC Halyk with a short position of VIRG NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSC Halyk and VIRG NATL.
Diversification Opportunities for JSC Halyk and VIRG NATL
Poor diversification
The 3 months correlation between JSC and VIRG is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding JSC Halyk bank and VIRG NATL BANKSH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIRG NATL BANKSH and JSC Halyk is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JSC Halyk bank are associated (or correlated) with VIRG NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIRG NATL BANKSH has no effect on the direction of JSC Halyk i.e., JSC Halyk and VIRG NATL go up and down completely randomly.
Pair Corralation between JSC Halyk and VIRG NATL
Assuming the 90 days trading horizon JSC Halyk bank is expected to generate 1.39 times more return on investment than VIRG NATL. However, JSC Halyk is 1.39 times more volatile than VIRG NATL BANKSH. It trades about 0.13 of its potential returns per unit of risk. VIRG NATL BANKSH is currently generating about 0.14 per unit of risk. If you would invest 1,630 in JSC Halyk bank on August 28, 2024 and sell it today you would earn a total of 170.00 from holding JSC Halyk bank or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSC Halyk bank vs. VIRG NATL BANKSH
Performance |
| Timeline |
| JSC Halyk bank |
| VIRG NATL BANKSH |
JSC Halyk and VIRG NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSC Halyk and VIRG NATL
The main advantage of trading using opposite JSC Halyk and VIRG NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC Halyk position performs unexpectedly, VIRG NATL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VIRG NATL will offset losses from the drop in VIRG NATL's long position.| JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. DBS Group Holdings | JSC Halyk vs. State Bank of | JSC Halyk vs. PT Bank Rakyat |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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